Energy budget is crippling

[NewsWhore]

According to figures provided by engineer Bernardo Castellanos, during the last four years the budget for the energy sector in the DR reached US$2 billion (RD$65 billion). Castellanos spoke of the "paradox" where the use of petroleum-generated electricity production plants has decreased, yet the subsidy for these types of generators has increased over the years. Castellanos's assertions prove that the increase in the subsidies to the energy sector aren't related to the increase in world petroleum prices, but the result of increasing inefficiency on the part of the power distribution companies. The distributors have been unable to make significant reductions in corporate losses and have failed to fulfill commitments made with the IMF or the World Bank. According to Castellanos, between 2000 and 2002 electricity generation using petroleum was at 90%, but since then there has been an increase in investment in energy production plants that don't use petroleum. Between 2000-2004 the government spent an estimated US$200 million on the construction of hydro-electrical generators and the energy production of these plants went from 125 MW in 2000 to 470 MW in 2004. There has also been an increase in the use of coal and gas powered electricity production, adding an extra 869 MW to the energy total. Castellanos said that non-petroleum based electricity production equaled 51.3% of the total between 2005-2007, compared to only 10% between 2000-2002. According to the World Bank, the energy sector's losses equaled 39% in 2004.

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